Trump Tariff Deadline: New US Tariffs May Start From August 1 If No Deal Reached, Says Treasury Chief

The United States is set to reintroduce tariffs on imports from major trading partners, including Taiwan and the European Union, starting August 1. This move will occur if bilateral trade agreements are not reached by then, according to Treasury Secretary Scott Bessent. The tariffs were initially announced by President Donald Trump on April 2 but were paused to allow for negotiations.

Bessent, in a conversation with CNN, highlighted that these suspended tariffs would revert to their previous high levels unless agreements are finalised by July 9. The administration had temporarily halted the tariff increase to facilitate discussions with affected countries. "Well, I'll probably start them on August 1. Well, that's pretty early. Right?" Trump remarked aboard Air Force One, indicating his intention to proceed with the plan.

Trade Negotiations and Agreements

The original tariff proposal included a 10% duty on most imports, with higher rates for certain nations. These rates were paused until July 9 to provide time for trade talks. Currently, the Trump administration has successfully concluded deals with the United Kingdom and Vietnam. Additionally, the US and China have agreed to temporarily reduce steep duties on each other's goods.

As the deadline approaches, Bessent mentioned that Washington is "close to several deals" and anticipates "several big announcements" soon. However, he refrained from naming specific countries involved in these negotiations. "I don't want to let them off the hook," he stated.

Pressure Tactics and Diplomatic Stance

Bessent dismissed claims that the administration was using threats instead of diplomacy. He clarified that August 1 is not a new deadline but rather when changes will take effect. "It's not a new deadline," he told CNN's Dana Bash. He emphasised that countries could expedite negotiations if they wish or revert to old rates if preferred.

The strategy aims at applying "maximum pressure," particularly on the European Union, which Bessent noted is making significant progress after initially lagging behind in negotiations. EU and US trade negotiators are continuing discussions over the weekend.

Global Reactions and Challenges

France's finance minister expressed hope for reaching an agreement before Monday. However, some countries remain resistant to US demands. Japan's Prime Minister Shigeru Ishiba stated that Tokyo "won't easily compromise" in its trade talks with the US.

Meanwhile, leaders of BRICS nations meeting in Rio de Janeiro are expected to strongly oppose the US tariff strategy. They argue that such measures are "illegal" and could negatively impact the global economy.

As July 9 nears, Trump has reinforced his plan to issue formal notifications rather than extend negotiations further. He reportedly said on Friday: "This is what you have to pay if you want to do business with the United States."